EAST TIMOR'S MINISTER OF FINANCE TO SIGN 10th EUROPEAN DEVELOPMENT
FUND (EDF)

The Minister of Finance, Ms. Emilia Pires, as the National Authorizing
Officer (NAO) on behalf of the Democratic Republic of Timor-Leste and
His Excellency Juan Carlos Rey Salgado, Head of the European
Commission Delegation to Timor-Leste will sign today the Country
Strategy Paper and the National Indicative Program for the 10th
European Development Fund for 2008-2013, in the presence of the Prime
Minister of Timor-Leste, His Excellency Xanana Gusmao.

The 10th EDF provides 63 million Euros for the funding of long-term
programs divided into four key areas:

1. Sustainable Rural Development -Thirty five million (35) Euros
has been allocated for sustained poverty reduction, food security and
improved service delivery to rural areas. Key areas of focus include
Infrastructure projects and the provision of clean drinking water and
electricity.

2. Health Care- Eight Million (8) Euros has been allocated to
Health Care, to improve the availability, accessibility and
affordability of health services in Timor-Leste and for the
development of a new and robust National Health Plan.

3. Institutional Capacity Building-Thirteen million (13) Euros
has been allocated for Institutional Capacity Building for sustainable
national capacity aimed at improved service delivery cross government
sectors.

4. Non focal Sectors- Seven million (7) Euros has been allocated
to support civil society and the Technical Cooperation Facility

The EDF initiatives are in line with the AMP Government's current
agenda to improve conditions in rural areas, provide better services
to the citizens of the nation while heavily investing into capacity
building and the development of human resources to provide better
service delivery.

The EU has contributed some 266 million Euros to Timor-Leste since
1999, making up one-half the total assistance to the nation. The
contribution has proved crucial to the ongoing development of the nation.

Ms. Pires said, `The European Development Fund is an integral function
of our national development. The Fund provides valuable resources from
which we as a government can work in tandem with our development
partners to achieve national solutions. We would like to take this
opportunity to express our ongoing gratitude for their support and
generosity.' END